Will California conform to the Paycheck Protection Program? April 2021 Tax News
We are receiving questions about whether or not California will conform to federal rules with respect to the Paycheck Protection Program or PPP that was passed under the CARES Act. In the February 2021 edition of Tax News, we published an article, What's new for filing 2020 tax returns, where we explained California treatment of PPP loan forgiveness. While income from PPP loan forgiveness is excluded for California purposes, any credit or deduction allowed for any amount paid or incurred should be reduced by the amount of the exclusion allowed under the PPP.
We are following the California Legislature and several bills have been introduced. If any become law, we will let you know through our various communication channels. You can follow various bills of the California Legislature at https://leginfo.legislature.ca.gov/.
If there are any changes in California law related to the PPP, we will let you know in a future edition of Tax News.